Dr. Thilo Senst reports
GBLT ENTERS INTO DEBT CONVERSION AGREEMENTS
GBLT Corp. has entered into debt conversion agreements with its four directors in respect of director sitting fees for the three months ended March 31, 2021, and the three months June 30, 2021. Pursuant to the agreements, each director has agreed to accept 17.85 common shares at a price of 21 cents per share in satisfaction of $3,750 of indebtedness owed to each director. The company determined to satisfy the foregoing indebtedness with common shares in order to preserve its cash. The transaction is subject to approval of the TSX Venture Exchange. In addition, such shares will be subject to a four-month hold period from the date of issuance.
The debt conversion constitutes a "related party transaction" pursuant to Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions (MI 61-101). The debt conversion is exempt from the formal valuation and minority shareholder approval requirements under MI 61-101 pursuant to subsections 5.5(b) and 5.7(1)(a), respectively, of MI 61-101, as the company's common shares are not listed on a specific market and the fair market value of these common shares to be issued pursuant to the debt conversions will not exceed 25 per cent of the company's market capitalization.
© 2021 Canjex Publishing Ltd. All rights reserved.